The Following Information Relates to a Firm with Several Similar

question 64

Multiple Choice

The following information relates to a firm with several similar products: $\begin{array} { | l | l | l | } \hline & \text { Cost } & \text { Retail } \\\hline \text { Beginning inventory } & \$ 29,000 & \$ 45,000 \\\hline \text { Purchases } & 140,000 & 190,000 \\\hline \text { Purchases discounts taken } & 3,000 & \\\hline \text { Purchases returns } & 5,000 & 8,000 \\\hline \text { Freight-in } & 20,000 & \\\hline \text { Net mark-ups } & & 40,000 \\\hline \text { Net markdowns } & & 12,000 \\\hline \text { Sales } & & 190,000 \\\hline \text { Employee discounts } & 3,000 \\\hline\end{array}$
Using the retail inventory method and the average cost flow assumption (not LCM) , what is ending inventory? When performing your calculations, round your cost ratios to one decimal point.

• A) $44,888
• B) $44,020
• C) $42,036
• D) $41,614